Abstract:
For the HR function to have a positive impact on performance
and thus strategically add value to the organization, it has
been suggested to redefine its traditional operational role.
However, to gain a deeper understanding of the relationship
between these HR roles and performance, their alignment
with the organizational strategy should not be ignored. In this
paper, we therefore focus not only on whether the operational
and strategic HR roles are linked to performance, but also
on the extent to which their alignment with the applied
organizational strategy actually matters for performance. We
carried out a survey study among 336 respondents either
holding an HR function or being responsible for HR-related
tasks in various organizations. We found a positive effect
of the strategic role on performance, and also how it might
substitute a lack of innovation strategy. Further, we found an
alignment effect between a cost strategy and the operational
HR role in relation to organizational performance. We discuss
these findings based on the literature and provide some
practical recommendations for further developing the role of
HR.